Some city councilors question Flanagan administration's use of outside legal counsel

Wednesday

Feb 12, 2014 at 6:19 PMFeb 12, 2014 at 6:28 PM

Jo C. Goode Herald News Staff Reporter @jgoodeHN

FALL RIVER — What began as an update on the former police station and an Environmental Protection Agency grant during Tuesday's City Council meeting changed to an inquiry on Mayor Will Flanagan's spending on outside legal counsel.

Since taking office in January, some city councilors have questioned Flanagan's spending and borrowing practices, particularly on the issue of bonding.

"They're attacking the administration to cause anxiety within the community, launching conspiracy theories and using the City Council forum to do so," Flanagan said. "This is a misuse of valuable time that's best used to do the job they were elected to do, working on economic development and jobs."

City Councilor Raymond Mitchell, one of the more outspoken members, said he agrees with Flanagan that the City Council should do its job — which, Mitchell said, means being the guardian of municipal spending.

"I don't think, when money is being spent recklessly, it's anything less than we should do," Mitchell said.

Since taking office, Mitchell said the mayor created a full-time corporation counsel office with the promise of more work being done in house, which costs $250,000 annually. In addition, the office uses outside counsel for another $250,000.

"We are trying to tell all department heads to look at the money they're spending," Mitchell said.

Flanagan provided budget numbers for the city legal department dating back to 2008. While the figures show higher dollar amounts than claimed by Mitchell — $576,723 in 2011, $627,168 in 2012, $631,985 in 2013 and $628,218 in 2014 — the legal budgets are much lower than those of former Mayor Robert Correia, who spent nearly $1 million annually for in-house legal work.

Flanagan said it was "shameful" that Mitchell would mislead the public, especially during a City Council meeting, and said his motivation was to "make the city mad at this administration."

Mitchell said he's taken aback and feels the council and administration should sit down "and correct the things done in the past."

During Tuesday's City Council meeting, several members took department heads to task over money spent on legal fees related to a $400,000 EPA Brownfields grant to assess contamination in properties in the city.

"It's my understanding the city went to a Boston firm and spent over $20,000 to get an assessment that would could have gotten right here in the city," Mitchell said. "Why are we hiring a Boston firm when we could have gotten the same information right here in Fall River?"

John Nunes, the city's treasurer and director of financial services, told the council that Boston firm Nixon Peabody was actually paid $18,925 for services.

Flanagan had hoped the grant could be used at the old police station on Bedford Street as the city attempted to sell it to private ownership.

Matthew Thomas, New Bedford attorney who was originally hired to broker the issue, said the EPA rejected the city's plan to use the grant to assess contamination at the police station property, citing the city as the polluter.

In May, Barrington, R.I., businessman Joseph Ruggiero was the sole bidder on the contaminated police station, with the caveat that he would seek the city's help with remediation. The sale never went through.

Corporation Counsel Elizabeth Sousa said it was her decision to hire Nixon Peabody to take over the matter.

The EPA again rejected the city's request to use the grant at the former police station.

While neither Sousa nor Nunes could immediately tell the council how much Nixon Peabody charged the city, Mitchell said he understood it was $300 an hour.

"I just feel it's wasteful spending to get a big firm up in Boston to tell you the same thing that you can get right here in Fall River for a $150 an hour," Mitchell said. "I just think we should not be throwing away money the way we've been throwing away money."

City Councilor Linda Pereira asked about what other work Nixon Peabody had done for the city, and Sousa said the firm is representing the city in the Dominion matter.

The administration is contending Dominion treated the city unfairly in a $1.6 million settlement agreement by awarding the entire amount to Somerset, claiming Fall River never applied. Sousa was the original lawyer charged with working with Dominion.

"Really, really how much is that going to cost us?" Pereira asked. "You didn't do your job, and now someone else is out there getting paid to do it?"

Sousa told Pereira she disagreed.

Pereira said she wished pursuing litigation against Dominion had gone to the City Council for a vote.

"I don't know if we're going to get anything, and I hate us going out there trying to get money all the time and that's just money down the river," Pereira said.

Regarding the former police station, Director of Community Maintenance Kenneth Pacheco said his department will conduct a $6,900 demolition audit on the building.

The audit would analyze what contaminated materials would need to be removed before demolition, Pacheco said. The contaminates are mainly asbestos and petroleum.

City Engineer Byron Holmes said several locations in the city have been identified for the EPA grant, including the Nu-Chrome building in the Fall River Industrial Park and several privately owned properties.